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Bel Fuse Inc. (BELFB) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Bel Fuse (BELFB - Free Report) ? Shares have been on the move with the stock up 42.5% over the past month. The stock hit a new 52-week high of $37.82 in the previous session. Bel Fuse has gained 190% since the start of the year compared to the -30.6% move for the Zacks Computer and Technology sector and the -35% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 26, 2022, Bel Fuse reported EPS of $1.48 versus consensus estimate of $0.76 while it beat the consensus revenue estimate by 11.79%.
For the current fiscal year, Bel Fuse is expected to post earnings of $4.13 per share on $643.21 million in revenues. This represents an 89.45% change in EPS on a 18.35% change in revenues. For the next fiscal year, the company is expected to earn $4.12 per share on $656 million in revenues. This represents a year-over-year change of -0.24% and 1.99%, respectively.
Valuation Metrics
Bel Fuse may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Bel Fuse has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.2X. On a trailing cash flow basis, the stock currently trades at 12.2X versus its peer group's average of 10.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Bel Fuse currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Bel Fuse passes the test. Thus, it seems as though Bel Fuse shares could have potential in the weeks and months to come.
How Does BELFB Stack Up to the Competition?
Shares of BELFB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Universal Electronics Inc. (UEIC - Free Report) . UEIC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Universal Electronics Inc. beat our consensus estimate by 42.86%, and for the current fiscal year, UEIC is expected to post earnings of $1.92 per share on revenue of $545.11 million.
Shares of Universal Electronics Inc. have gained 28.1% over the past month, and currently trade at a forward P/E of 7.78X and a P/CF of 9.09X.
The Electronics - Miscellaneous Products industry is in the top 36% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BELFB and UEIC, even beyond their own solid fundamental situation.
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Bel Fuse Inc. (BELFB) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Bel Fuse (BELFB - Free Report) ? Shares have been on the move with the stock up 42.5% over the past month. The stock hit a new 52-week high of $37.82 in the previous session. Bel Fuse has gained 190% since the start of the year compared to the -30.6% move for the Zacks Computer and Technology sector and the -35% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 26, 2022, Bel Fuse reported EPS of $1.48 versus consensus estimate of $0.76 while it beat the consensus revenue estimate by 11.79%.
For the current fiscal year, Bel Fuse is expected to post earnings of $4.13 per share on $643.21 million in revenues. This represents an 89.45% change in EPS on a 18.35% change in revenues. For the next fiscal year, the company is expected to earn $4.12 per share on $656 million in revenues. This represents a year-over-year change of -0.24% and 1.99%, respectively.
Valuation Metrics
Bel Fuse may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Bel Fuse has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.2X. On a trailing cash flow basis, the stock currently trades at 12.2X versus its peer group's average of 10.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Bel Fuse currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Bel Fuse passes the test. Thus, it seems as though Bel Fuse shares could have potential in the weeks and months to come.
How Does BELFB Stack Up to the Competition?
Shares of BELFB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Universal Electronics Inc. (UEIC - Free Report) . UEIC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Universal Electronics Inc. beat our consensus estimate by 42.86%, and for the current fiscal year, UEIC is expected to post earnings of $1.92 per share on revenue of $545.11 million.
Shares of Universal Electronics Inc. have gained 28.1% over the past month, and currently trade at a forward P/E of 7.78X and a P/CF of 9.09X.
The Electronics - Miscellaneous Products industry is in the top 36% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BELFB and UEIC, even beyond their own solid fundamental situation.